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Taxes

One of the key advantages in our area is that neither Texas nor Garland imposes any of the following:

Personal income tax

State property tax

Local Occupation tax

Local wage tax

Gross receipts tax

Property Tax Rates*

City of Garland

$0.70460

Dallas Co.

$0.25310

Hospital District

$0.27940

College District

$0.12423

Garland ISD

$1.46000

Total

$2.82133

*Per $100 in assessed value (Updated November, 2017)

Triple Freeport Exemption

Business personal property that is only located in Texas for a temporary period of time (less than 175 days) is considered freeport goods. Garland businesses are exempt from paying business personal property tax on goods that have been acquired in or imported into Texas to be forwarded out of the State within 175 days.

Sales/ Use Tax

City

1.00%

MTA

1.00%

State

6.25%

Total

8.25%

Hotel/Motel Tax

City

7.00%

State

6.00%

Total

13.00%

Franchise Tax

The Texas franchise tax is a privilege tax imposed on each taxable entity chartered or organized in Texas or those doing business in Texas. The revised franchise tax applies to partnerships (general, limited and limited liability), corporations, LLCs, business trusts, professional associations, business associations, joint ventures and other legal entities.

The revised franchise tax does not apply to:

Sole proprietorships (except the tax does apply to single member LLCs filing as a sole proprietor for federal income tax purposes)

General partnerships directly and solely owned by natural persons (except the tax does apply to all limited liability partnerships)

Entities exempt under Subchapter B of Chapter 171

Passive entities (as defined under TTC 171.0003). Note that some passive entities have an annual reporting requirement to affirm their passive status.

The franchise tax rates are:

1.0% (.01) for most entities

0.5% (.005) for qualifying wholesalers and retailers

0.575% for those entities with $10 million or less in Total Revenue (annualized per 12 month period on which the report is based) electing the E-Z Computation